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January 2008
Mike Smith – P3 Column “The best way to predict the
future is to invent it”
I hope that you had an enjoyable Christmas and New Year and
of course a successful trading period. Now the festivities are over it is the
time to clear away the debris and start to think again about the future.
I attended a number of key industry events towards the end of last year and a
key message which I took from many of these, underlined my thoughts that the
future is challenging but full of opportunity. The UniChem Pharmacy Awards in
November gave a perfect demonstration of the way forward for pharmacy and the
high number and quality of the entries gives me much optimism for the future of
our profession.
However, the APPG meeting in November did nothing to remove my fears about PCO
engagement with pharmacy. My question to Dawn Primarolo was eventually answered
but frankly not to my great satisfaction. I attempted to find out about lack of
engagement with pharmacy and accountability of Primary Care Organisations -
something quite dear to my heart as it seems likely that 50% of our
remuneration will be devolved to these organisations. I really feel that we
have to start to knock on some doors now as the powers that be are clearly
under the misconception that local commissioning works! To use the words of Dr
Colin Thome at the NPA dinner - now is the time to kick some doors down.
I also attended the Alphega Pharmacy Convention in December and the enthusiasm
for this virtual chain concept was characterised by the 350 members who
attended. The chain is new to UniChem and the UK, but is well established in
France, Italy and Spain and there are now around 800 members across Europe, who
are demonstrating a significant increase in their prescription, OTC and service
generated income.
It was clear from the messages relayed at this Convention, that the pressures
that we have experienced over recent years are now affecting the rest of
Europe. The attendance of a speaker from the EU commission made it clear that
pharmacy is in their sights and the other interesting thing for me was the
attendance of several senior executives from global pharma companies. They
clearly see that the Alphega Pharmacy concept is worth their investment going
forward. These global players know the market and their messages were
remarkably consistent:
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Move from volume margin to service margin and move quickly.
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Take control of your own destiny.
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Pharma will support you – but in turn you must support them or they will look
elsewhere. They will grow your categories if you support them.
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Healthcare is becoming increasingly unaffordable across Europe. We are living
longer and drugs are more expensive. The growth of private healthcare is
inevitable and this offers a niche market for pharmacy.
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Knowledge is power and enthusiasm pulls the switch.
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Take a leap of faith – be bold.
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Be positive about the future and do not be nostalgic about the past.
These are comments from individuals who have tremendous knowledge based on
quality market research. We ignore them at our peril! We are all very aware
that discounts will continue to fall and our margins will be under further
pressure. So we have to think outside the box and kick some doors down at our
PCOs. We can all identify niche markets and develop more private services such
as weight management, NRT, and lifestyle advice. In particular I like the idea
of a pharmacy ‘package’ deal containing, for example, an MUR, plus BP,
cholesterol screening, FBG, and relevant lifestyle advice. I know pharmacies
that charge £50 for this service and they have plenty of takers! You can also
organize follow up consultations and you will develop a loyal following for
what can easily become your own private practice.
Apathy is our greatest enemy…
mike.h.smith@unichem.co.uk
For more information please contact:
Sanam Conway, Communications Executive: 0208 974 4045
Helena Bate, Communications Manager: 0208 974 4044
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